Tesla's India Strategy: Showrooms Over Manufacturing

Tesla is steering away from manufacturing its electric vehicles in India but is keen on setting up showrooms, as per Union Heavy Industries Minister H D Kumaraswamy. The company's stance was revealed during discussions on the Scheme to Promote Manufacturing of Electric Cars in India.

US President Donald Trump expressed concerns, suggesting that if Tesla were to establish a factory in India, it might result in tariff-related issues, potentially disadvantaging the US market. The minister mentioned that Tesla's interest was primarily in the retail domain rather than production.

Despite Tesla CEO Elon Musk's expressed interest last year, obligations have delayed significant progress. Only a Tesla representative participated in initial discussions, skipping subsequent stakeholder meetings, underscoring the company's current India strategy.

(With inputs from agencies.)